Tesla shares jump as record deliveries ease demand concerns

Tesla Inc shares opened nearly 7% higher on Wednesday after Chief Executive

Tesla shares jump as record deliveries ease demand concerns

Curated via Twitter from Reuters Tech News’s twitter account….

Tesla still faces multiple challenges, including starting production in China in the backdrop of U. S. -China trade tensions and overhauling its production process at a time when several of its top executives are leaving the company. “These are undeniably strong numbers, but given Tesla’s recent history of significant swings in performance from quarter-to-quarter we remain cautious for now,” Hargreaves Lansdown analyst Nicholas Hyett said.

Wall Street analysts and investors have raised doubts about demand and the Silicon Valley automaker’s ability to sort out recent delivery issues, particularly after a disastrous first quarter when deliveries slumped 31%. “We are increasingly comfortable that they should reflect an even better in the third quarter, and probably their first hundred thousand in a quarter,” Roth Capital analyst Craig Irwin said.

While Musk has been trying to convince investors that demand remains high for Tesla cars and delivery could be made efficiently, some analysts remained skeptical about Tesla’s ability to deliver on its promise and maintain margins.

O) shares opened nearly 7% higher on Wednesday after Chief Executive Officer Elon Musk made good on his promise of delivering record number of electric cars in the second quarter, quelling fears about demand for its sedans and SUVs.

Tesla’s first quarter was hurt by logistics issues at international ports and a drop-off in U. S. orders after a tax credit was halved, which spurred concerns that demand for Tesla’s electric cars may have peaked.

Bernstein analyst Toni Sacconaghi said Tesla “has a shot at being profitable this quarter on a non-GAAP (adjusted) basis, even with materially pressured automotive gross margins”.

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